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Is Levi Strauss (LEVI) Undervalued As Earnings And Tariff Questions Build?

Simply Wall St · 1d ago

Levi Strauss (LEVI) is back in focus after UBS highlighted the potential for a stronger earnings outlook tied to revenue trends and tariff assumptions ahead of the apparel group’s upcoming third quarter results call.

Levi Strauss shares trade at US$19.63 and have been under pressure recently, with the 30-day share price return down 9.62% and the 90-day move down 18.17%. However, the 3-year total shareholder return of 61.76% points to a much stronger longer-term record despite the weaker momentum into this earnings update.

Scan how Levi Strauss stacks up against peers by reviewing our hand-picked 30 high quality undervalued stocks that combine earnings power with balance sheet strength.

Levi Strauss now trades well below the average analyst target, and the recent pullback only widens that gap. So where does a reasonable fair value range actually land for this stock?

Most Popular Narrative: 30% Undervalued

On Simply Wall St's most followed narrative, Levi Strauss screens as materially undervalued, with a fair value estimate of $28.20 against the last close at $19.63. This puts the UBS debate about earnings and tariffs into sharper context.

Levi's decisive shift to a Direct-to-Consumer-first business, now representing over half of sales, is delivering higher margins (DTC EBIT up 400bps YTD), greater control over brand experience, and faster innovation cycles, driving sustained improvements in net margins and future earnings.

See why 40 investors see Levi Strauss as 30% undervalued.

Result: Fair Value of $28.20 (UNDERVALUED)

Still, the Levi Strauss narrative can unravel if tariff costs bite harder than expected or if denim centric demand softens as the business trims secondary brands.

Find out about the key risks to this Levi Strauss narrative.

Another View on Levi Strauss Valuation

A different lens tells a less generous story for Levi Strauss. Simply Wall St's DCF model, which prices the stock off future cash flows, points to a fair value of $12.09 against the current $19.63, implying the shares screen as overvalued rather than cheap. Which narrative do you consider more compelling?

Look into how the SWS DCF model arrives at its fair value.

LEVI Discounted Cash Flow as at Sep 2026
LEVI Discounted Cash Flow as at Sep 2026

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Levi Strauss for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 30 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

Conflicted by the split views around Levi Strauss today. Move quickly, review the evidence yourself, and weigh both sides of the story in the 5 key rewards and 1 important warning sign.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.